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  U.S. Department of State, October 1999
Bureau of Western Hemisphere Affairs

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Background Notes:
Honduras

 
Official Name:
Republic of Honduras

PROFILE

Geography

Area: 112,100 sq. km. (43,270 sq. mi.); about the size of Louisiana.
Cities: Capital--Tegucigalpa (850,000); San Pedro Sula (500,000); metropolitan area of each city approximately 1 million.
Terrain: Mountainous.
Climate: Tropical to subtropical, depending on elevation.

People

Nationality: Noun and adjective--Honduran(s).
Population (1998 est.): 6 million.
Growth rate: 2.8%.
Ethnic groups: 90% mestizo (mixed Indian and European); others of European, Arab, African, or Asian ancestry; and indigenous Indians.
Religions: Roman Catholic, Protestant minority.
Language: Spanish.
Education: Years compulsory--6. Attendance--70% overall, but less than 16% at junior high level. Literacy--78.5%.
Health: Infant mortality rate--42/1,000. Life expectancy--68 yrs.
Work force: Services--32%. Natural resources/agriculture--38%. Manufacturing--18%. Construction/housing--12%.

Government

Type: Democratic constitutional republic.
Independence: September 15, 1821.
Constitution: 1982.
Branches: Executive--president, directly elected to 4-year term. Legislative--unicameral National Congress, elected for 4-year term. Judicial--Supreme Court of Justice (appointed by Congress and confirmed by the president); several lower courts.
Political parties: Liberal Party, National Party, Innovation and Unity Party, Christian Democratic Party, and the Democratic Unification Party.
Suffrage: Universal adult.
Administrative subdivisions: 18 departments.

Economy (1998 preliminary data)

GDP: $4.8 billion.
Growth rate: 3%.
Per capita GDP: $810.
Natural resources: Arable land, forests, minerals, fisheries.
Agriculture (24% of GDP): Products--coffee, bananas, shrimp and lobster, sugar, fruits, basic grains, livestock.
Industry (18% of GDP): Types--textiles and apparel, cement, wood products, cigars, foodstuffs.
Trade: Exports--$2.2 billion: coffee, bananas, shrimp, citrus fruits, textile products, lead/zinc concentrates, beef, lumber, sugar. Major market--U.S. (53%). Imports--$2.6 billion: petroleum, manufactured goods, machinery, chemicals. Major supplier--U.S. (43%).
Exchange rate (October 1999): 13.4 lempiras=U.S.$1.

PEOPLE AND HISTORY

About 90% of the population is mestizo. There also are small minorities of European, African, Asian, Arab, and indigenous Indian descent. Most Hondurans are Roman Catholic, but Protestant proselytization has resulted in significant numbers of converts. Spanish is the predominant language, although some English is spoken along the northern coast and on the Caribbean Bay Islands. Indigenous Indian dialects and the Garifuna dialect also are spoken. The restored Mayan ruins near the Guatemalan border in Copan reflect the great Mayan culture that flourished there for hundreds of years until the early ninth century. Mayan artifacts also can be found at the National Museum in Tegucigalpa. Columbus landed at mainland Honduras (Trujillo) in 1502. He named it "Honduras" (meaning "depths") for the deep water off the coast. Spaniard Hernan Cortes arrived in 1524. The Spanish began founding settlements along the coast and Honduras came under the control of the Captaincy General of Guatemala. The cities of Comayagua and Tegucigalpa developed as early mining centers.

Independence

Honduras, along with the other Central American provinces, gained independence from Spain in 1821; it then briefly was annexed to the Mexican Empire. In 1823, Honduras joined the newly formed United Provinces of Central America. Before long, social and economic differences between Honduras and its regional neighbors exacerbated harsh partisan strife among Central American leaders and brought on the federation's collapse in 1838. Gen. Francisco Morazan -- a Honduran national hero -- led unsuccessful efforts to maintain the federation, and restoring Central American unity remained the chief aim of Honduran foreign policy until after World War I.

Since independence, Honduras has been plagued with nearly 300 internal rebellions, civil wars, and changes of government -- more than half occurring during this century. The country traditionally lacked both an economic infrastructure and social and political integration. Its agriculturally based economy came to be dominated in this century by U.S. companies that established vast banana plantations along the north coast. Foreign capital, plantation life, and conservative politics held sway in Honduras from the late 19th until the mid-20th century. During the relatively stable years of the Great Depression, authoritarian Gen. Tiburcio Carias Andino controlled Honduras. His ties to dictators in neighboring countries and to U.S. banana companies helped him maintain power until 1948. By then, provincial military leaders had begun to gain control of the two major parties, the Nationalists and the Liberals.

From Military to Civilian Rule

In October 1955 -- after two authoritarian administrations and a general strike by banana workers on the north coast in 1954 -- young military reformists staged a palace coup that installed a provisional junta and paved the way for constituent assembly elections In 1957. This assembly appointed Dr. Ramon Villeda Morales as president and transformed itself into a national legislature with a 6-year term. The Liberal Party ruled during 1957-63. At the same time, the military took its first steps to become a professional institution independent of leadership from any one political party, and the newly created military academy graduated its first class in 1960. In October 1963, conservative military officers preempted constitutional elections and deposed Villeda in a bloody coup. These officers exiled Liberal Party members and took control of the national police. The armed forces, led by Gen. Lopez Arellano, governed until 1970. A civilian president -- Ramon Cruz of the National Party -- took power briefly in 1970 but proved unable to manage the government. Popular discontent had continued to rise after a 1969 border war with El Salvador; in December 1972, Gen. Lopez staged another coup. Lopez adopted more progressive policies, including land reform, but his regime was brought down in the mid-1970s by scandals.

Gen. Lopez' successors continued armed forces modernization programs, building army and security forces, and concentrating on Honduran air force superiority over its neighbors. The regimes of Gen. Melgar Castro (1975-78) and Gen. Paz Garcia (I 978-83) largely built the current physical infrastructure and telecommunications system of Honduras. The country also enjoyed its most rapid economic growth during this period, due to greater international demand for its products and the availability of foreign commercial lending.

Following the overthrow of Anastasio Somoza in Nicaragua in 1979 and general instability in El Salvador at the time, the Honduran military accelerated plans to return the country to civilian rule. A constituent assembly was popularly elected in April 1980 and general elections were held in November 1981. A new constitution was approved in 1982 and the Liberal Party government of President Roberto Suazo Cordoba assumed power.

Suazo relied on U.S. support to help with a severe economic recession and with the threat posed by the revolutionary Sandinista government in Nicaragua amid a brutal civil war in El Salvador. Close cooperation on political and military issues with the United States was complemented by ambitious social and economic development projects sponsored by the U.S. Agency for International Development (USAID). Honduras became host to the largest Peace Corps mission in the world and non-governmental and international voluntary agencies proliferated.

As the November 1985 election approached, the Liberal Party had difficulty settling on a candidate and interpreted election law as permitting multiple presidential candidates from one party. The Liberal Party claimed victory when its presidential candidates collectively outpolled the National Party candidate, Rafael Leonardo Callejas, who received 42% of the vote. Jose Azcona Hoyo, the candidate receiving the most votes (27%) among the Liberals, assumed the presidency in January 1986. With strong endorsement and support from the Honduran military, the Suazo Administration had ushered in the first peaceful transfer of power between civilian presidents in more than 30 years. Four years later, Rafael Callejas won the presidential election, taking office in January 1990. Callejas concentrated on economic reform, reducing the deficit, and taking steps to deal with an overvalued exchange rate and major structural barriers to investment. He began the movement to place the military under civilian control and laid the groundwork for the creation of the public ministry (Attorney General's office).

Despite the Callejas Administration's economic reforms, growing public dissatisfaction with the rising cost of living and with seemingly widespread government corruption led voters in 1993 to elect Liberal Party candidate Carlos Roberto Reina over National Party contender Oswaldo Ramos Soto, with Reina winning 56% of the vote.

President Reina, elected on a platform calling for a "Moral Revolution," actively prosecuted corruption and pursued those responsible for human rights abuses in the 1980s. He created a modern attorney general's office and an investigative police force and reduced Honduras' historic and endemic corruption and elite impunity. As a result, a notable start has been made in institutionalizing the rule of law in Honduras.

A hallmark of the Reina Administration was his successful efforts to increase civilian control over the armed forces, making his time in office a period of fundamental change in civil-military relations in Honduras. Important achievements -- including the abolition of the military draft and passage of legislation transferring the national police from military to civilian authority have brought civil-military relations closer to the kind of balance normal in a constitutional democracy. Additionally, President Reina in 1996 named his own defense minister, breaking the precedent of accepting the nominee of the armed forces leadership.

Reina restored national fiscal health. After a rough start in 1994-95, the Reina Administration substantially increased Central Bank net international reserves; reduced inflation to 12.8% a year; restored a healthy pace of economic growth (about 5% in 1997); and, perhaps most important, held down spending to achieve a 1.1% non-financial public sector deficit in 1997.

Carlos Roberto Flores Facusse took office on January 27, 1998, as Honduras' fifth democratically elected President since free elections were restored in 1981. Like three of his four predecessors, including his immediate predecessor, Flores is a member of the Liberal Party. He was elected with a 10% margin over his main opponent -- National Party nominee Nora de Melgar -- in free, fair, and peaceful elections on November 30, 1997. These elections, probably the cleanest in Honduran history, reflected the maturing of Honduras' democratic institutions. Upon taking office on January 27, 1998, Flores inaugurated programs of reform and modernization of the Honduran Government and economy, with emphasis on helping Honduras' poorest citizens while maintaining the country's fiscal health and improving international competitiveness.

GOVERNMENT

The 1982 constitution provides for a strong executive, a unicameral National Congress, and a judiciary appointed by the National Congress. The president is directly elected to a 4-year term by popular vote. The congress also serves a 4-year term; congressional seats are assigned the parties' candidates in proportion to the number of votes each party receives. The judiciary includes a Supreme Court of Justice, courts of appeal, and several courts of original jurisdiction -- such as labor, tax, and criminal courts. For administrative purposes, Honduras is divided into 18 departments, with departmental and municipal officials selected for 2-year terms.

National Security

Events during the 1980s in El Salvador and Nicaragua led Honduras -- with U.S. assistance -- to expand its armed forces considerably, laying particular emphasis on its air force, which came to include a squadron of U.S.-provided F-5s. The resolution of the civil wars in El Salvador and Nicaragua and across-the-board budget cuts made in all ministries has brought reduced funding for the Honduran armed forces. The abolition of the draft has created staffing gaps in the now all-volunteer armed forces. The military now is far below its authorized strength and further reductions are expected. In January 1999, the Constitution was amended to abolish the position of military commander-in-chief of the armed forces, thus codifying civilian authority over the military. President Flores also named the first civilian minister of defense in the country's history.

POLITICAL CONDITIONS

Reinforced by the media and several political watchdog organizations, human rights and civil liberties are reasonably well protected. There are no known political prisoners in Honduras and the privately owned media frequently exercises its right to criticize without fear of reprisals. Organized labor now represents less than 15% of the work force and its economic and political influence has declined. Honduras held its fifth consecutive democratic elections in November 1997, to elect a new President, unicameral Congress, and mayors; for the first time, voters were able to cast separate ballots for each office.

Political Parties

The two major parties -- the Liberal Party and the National Party -- run active campaigns throughout the country. Their ideologies are mostly centrist, with diverse factions in each centered on personalities. The three smaller registered parties -- the Christian Democratic Party, the Innovation and Unity Party, and the Democratic Unification Party -- remain marginal, slightly left-of-center groupings with few campaign resources and little organization. Despite significant progress in training and installing more skillful advisers at the top of each party ladder, electoral politics in Honduras remain traditionalist and paternalistic. Honduras will hold its next general elections -- which will choose the nation's next President, Congress, and mayors -- in November 2001.

Principal Government Officials

President--Carlos Roberto FLORES Facusse
Minister of Foreign Relations--Roberto FLORES Bermudez
Ambassador to the U.S.--Hugo NOE Pino
Ambassador to the UN--Edmundo ORELLANA
Ambassador to the OAS--Dr. Laura NUNEZ Flores

Honduras maintains an embassy in the United States at 3007 Tilden Street NW, Washington, DC 20008 (tel. 202-966-7702).

ECONOMY

Honduras is one of the poorest and least developed countries in Latin America. The economy is based mostly on agriculture, which accounted for 24% of GDP in 1998. Coffee and bananas accounted for about 37% of total Honduran export revenues in 1998. Honduras has extensive forest, marine, and mineral resources, although widespread slash-and-burn agricultural methods continue to destroy Honduran forests. Hondurans, however, are becoming more concerned about protecting their environmental patrimony. Unemployment is estimated at 6.3%. Preliminary data show that the Honduran economy, which was devastated by Hurricane Mitch in October and November 1998, still managed to grow 3.0% that year. Pre-hurricane estimates called for 5% growth. Growth was led by strong performances in the manufacturing, financial services, utilities, and mining sectors. The Honduran maquiladora sector continued its strong performance in 1998, providing employment to 100,000 and generating more than $330 million in foreign exchange for the country. Inflation, as measured by the consumer price index, increased by 15.6% in 1998, up from the 12.8% recorded in 1997. The nation's international reserve position continued to strengthen in 1998, and exceeded $500 million at year's end.

Honduran Government economists forecast negative 2% economic growth in 1999 as a consequence of hurricane damage. These sources project that the country's balance of payments current account deficit will be the equivalent of 14% of GDP in 1999. Financial and other aid from international donor countries and organizations will cushion some of the impact to the economy in 1999, as the government and the private sector begin the lengthy process of reconstruction and reinvestment. On the bright side, Honduras expects to sign an enhanced structural adjustment facility with the International Monetary Fund in early 1999 that will provide fresh flows of international credit and set the stage for significant reductions in Honduras' official foreign debt of $4 billion.

Since the hurricane, Honduras has redoubled its efforts to provide a favorable climate to foreign investment. In the last two months of 1998, Congress passed legislation reforming the mining code, allowing concessional operation of airports and seaports, providing incentives for renewable energy projects (many by U.S. investors), and allowing foreign tourism development in coastal areas. Congress earlier passed a law authorizing the sale of 50% of the state-owned telephone company to a foreign partner and the auctioning of Band B cellular service. The government also pledged to accelerate the privatization of the electric company's distribution system.

FOREIGN RELATIONS

Honduras is a member of the United Nations, the World Trade Organization (WTO), the Organization of American States (OAS), the Central American Parliament (PARLACEN), the Central American Integration System (SICA), and the Central American Security Commission (CASQ). During 1995-96, Honduras, a founding member of the United Nations, for the first time served as a non-permanent member of the UN Security Council.

President Flores consults frequently with the other Central American presidents on issues of mutual interest. He has continued his predecessor's strong emphasis on Central American cooperation and integration, which resulted in an agreement easing border controls and tariffs among Honduras, Guatemala, Nicaragua, and El Salvador. Honduras also joined its six Central American neighbors at the 1994 Summit of the Americas in signing the Alliance for Sustainable Development, known as the Conjunta Centroamerica-USA, or CONCAUSA, to promote sustainable economic development in the region. Honduras held the six-month SICA presidency during the second half of 1998.

In 1969, El Salvador and Honduras fought the brief "Soccer War" over disputed border areas and friction resulting from the 300,000 Salvadorans who had emigrated to Honduras in search of land and employment. The catalyst was nationalistic feelings aroused by a series of soccer matches between the two countries. The two countries formally signed a peace treaty on October 30, 1980, which put the border dispute before the International Court of Justice. In September 1992, the court awarded most of the disputed territory to Honduras. In January 1998, Honduras and El Salvador signed a border demarcation treaty that will implement the terms of the ICJ decree. The treaty awaits legal ratification in both countries. Honduras and El Salvador maintain normal diplomatic and trade relations.

At the 17th Central American Summit in 1995, hosted by Honduras in the northern city of San Pedro Sula, the region's six countries (excluding Belize) signed treaties creating confidence and security-building measures and combating the smuggling of stolen automobiles in the isthmus. In subsequent summits (held every six months), Honduras has continued to work with the other Central American countries on issues of common concern.

In Costa Rica in May 1997, former President Reina met with President Clinton, his Central American counterparts, and the president of the Dominican Republic to celebrate the remarkable democratic transformation in the region and reaffirm support for strengthening democracy, good governance, and promoting prosperity through economic integration, free trade, and investment. The leaders also expressed their commitment to the continued development of just and equitable societies and responsible environmental policies as an integral element of sustainable development.

U.S.-HONDURAN RELATIONS

The United States and Honduras have close and friendly relations. Honduras is supportive of U.S. policy in the UN and other fora. In 1996, Honduras' overall voting coincidence with the United States in the United Nations was 44.3% and in 1997, it was 40.3%. As a non-permanent member of the UN Security Council, Honduras played a very helpful role in 1996, most notably in advancing the process of selecting a new UN Secretary General during its October presidency of the Council. The U.S. also continued to be able to count on Honduras' strong support against Iraq.

The U.S. favors stable, peaceful relations between Honduras and its Central American neighbors. During the 1980s, Honduras supported U.S. policy in Central America opposing a revolutionary Marxist government in Nicaragua and an active leftist insurgency in El Salvador. The Honduran Government also played a key role in negotiations that culminated in the 1990 Nicaraguan elections. Honduras contributed troops for the UN peacekeeping mission in Haiti and continues to participate in the UN observers mission in the Western Sahara.

The U.S. works with Honduras for sustained economic, political, and social development and to combat drug trafficking in the region. Because of economic needs and security concerns, U.S. material assistance and political support are important to Honduras. USAID is active in Honduras, although official U.S. assistance to the country has been reduced -- from $51 million in 1993 to $29 million in 1997 -- due to worldwide reductions in U.S. bilateral assistance. The U.S. plans to increase its assistance to Honduras and work with the international lenders such as the World Bank and the private sector to promote economic recovery from Hurricane Mitch.

The United States is Honduras' chief trading partner, supplying 43% of its imports and purchasing 53% of its exports. Leading Honduran exports to the United States have included coffee, bananas, textile products, other fruits and vegetables, seafood, and beef. The United States encourages U.S. investment that contributes to Honduran development and bilateral trade. The United States accounts for about 75% of total direct foreign investment in Honduras; this is worth an estimated $900 million. The largest U.S. investments in Honduras are in fruit production -- particularly banana and citrus -- petroleum refining and marketing, and mining. In addition, U.S. corporations have invested in tobacco, apparel, shrimp culture, beef, poultry and animal-feed production, insurance, leasing, food processing, brewing, and furniture manufacturing. U.S. apparel facilities or maquilas are responsible for the majority of the approximately 100,000 jobs in that sector of Honduran businesses.

The U.S. maintains a small presence at a Honduran military base; the two countries conduct joint counternarcotics, humanitarian, and civic action exercises. U.S. troops conduct and provide logistics support for a variety of exercises (medical, engineering, peacekeeping, counternarcotics, and disaster relief) for the benefit of the Honduran people and their Central American neighbors. U.S. forces -- regular, reserve, and National Guard -- benefit greatly from the training and exercises.

U.S. troops -- in collaboration with counterparts from Brazil and Colombia -- since 1994 have assisted Honduran soldiers in clearing land mines from the country's border with Nicaragua. As of early 1998, approximately 180,000 square meters had been cleared of mines and approximately 2,000 mines had been destroyed.

Principal U.S. Embassy Officials

Ambassador--Frank Almaguer
Deputy Chief of Mission--Paul A. Trivelli
Political Counselor--Edward J. Michal
Economic Counselor--David Wolfe
Consul General--Catherine Barry
Administrative Counselor--Samuel Durret
USAID Director--Elena L. Brineman
Public Affairs Officer (USIS)--Gregory Adams
Defense Attache--Col. David Kuhns
Military Group Commander--Col. Daniel Davis, USA
Peace Corps Director--Arnoldo Resendez

The U.S. embassy in Honduras is located on Avenida La Paz, Tegucigalpa (tel.: 011-504-2369320; faxes: general--011-504-236-9037, USAID-011-504-236-7776, USIS--0l1-504-236-9309, Military Group--011-504-233-6171, Commercial Section--011-504-238-2888, Consulate-011-504-237-1792). Internet: http://www.usia.gov/abtusia/posts/HO1/wwwhmain.html

U.S. POLICY TOWARD HONDURAS

U.S. policy toward Honduras is aimed at consolidating stable democracy with a justice system that protects human rights and is fair and effective. U.S. Government programs are aimed at promoting a healthy and more open economy capable of sustainable growth, improving the climate for business and investment while protecting U.S. citizen and corporate rights, and promoting the well-being of the Honduran people. The U.S. also works with Honduras to meet transnational challenges, including the fight against narcotics trafficking, and encourages and supports Honduran efforts to protect the environment. The goals of strengthening democracy and promoting viable economic growth are especially important given the geographical proximity of Honduras to the United States.

A top priority is to assist Honduras and its Central American neighbors in recovering from Hurricane Mitch, which brought unprecedented destruction to the region in October 1998. In Honduras alone, an estimated $3 billion in damage to infrastructure and productive capacity was sustained. To the extent U.S. policy is successful in helping democracy and economic opportunity to flourish in Honduras, we contribute to a better quality of life for Hondurans and reduce the pressures that compel many Hondurans to attempt to migrate illegally to the U.S.

U.S.-Honduran ties are further strengthened by numerous private sector contacts, with an average of 110,000 U.S. citizens visiting Honduras annually and approximately 10,500 Americans residing there. In recent years, more than 100 American companies have been operating in Honduras.

U.S. Economic and Development Assistance

In order to help strengthen Honduras' democratic institutions and improve living conditions, the U.S. has provided substantial economic assistance. The U.S. has historically been the largest bilateral donor to Honduras. Total aid from the U.S. to Honduras for the period 1991-95 was $322 million. U.S. Agency for International Development obligations to Honduras totaled $24.3 million for development assistance and $4.7 million for foodstuffs in 1997. Over the years, such appropriations have been used to achieve such objectives as fostering democratic institutions, increasing private sector employment and income, helping Honduras fund its arrears with international financial institutions, providing humanitarian aid, increasing agricultural production, and providing loans to micro-businesses. Of the $29 million of U.S. aid in FY97, more than $16 million was spent directly on goods and services from the United States. In addition, since about half of Honduras' imports come from the U.S., development assistance that stimulates growth of the Honduran economy indirectly stimulates U.S. exports and thus supports additional employment and growth in the U.S. economy.

However, Hurricane Mitch -- the worst natural disaster ever to strike the Western Hemisphere -- brought massive rains to Honduras that killed thousands of people, left hundreds of thousands homeless, devastated the road network and other public infrastructure, and crippled certain key sectors of the economy. Estimates are that Hurricane Mitch caused $8.5 billion in damages to homes, hospitals, schools, roads, farms, and businesses throughout Central America, including more than $3 billion in Honduras alone. Throughout the country, damage affected highways, bridges, ports and airports; the electrical power system, the telephone, water and sewage systems; hospitals and health centers; more than 3,000 schools; almost 83,000 houses; private agricultural infrastructure; and the non-agricultural private sector. Estimates of lost future productive capacity vary.

In response to this disaster, the U.S. has proposed a significant supplemental budget request for Central America, in addition to the more than $300 million in immediate humanitarian aid provided in the wake of the storm. This supplemental assistance is designed to help repair water and sanitation systems; housing, schools, and roads; provide agricultural inputs; local government crisis management training; debt relief for Honduras and Nicaragua; and environmental management expertise. Additional resources have been proposed to maintain anti-crime and drug assistance programs.

New and existing U.S. economic programs -- some with proposed enhancements that have taken on even greater importance since the hurricane -- include the Caribbean Basin Economic Recovery Act, Overseas Private Investment Corporation financing for private investment and insurance against risks of war and expropriation, U.S. Trade Development Agency grant loans for pre-feasibility studies of projects with U.S. product and services export potential, and U.S. Export-Import Bank short- and medium-term financing for U.S. exports to Honduran importers. All of these provide greater economic opportunity for U.S. and Honduran businessmen and women.

The Peace Corps has been active in Honduras since 1962, and at one time the program there was the largest in the world. During that time some 5,000 American women and men, ranging in age from 22 to 65, have helped the people of Honduras. In 1997, there were 200 Peace Corps Volunteers working in the poorest parts of Honduras. As a result of Hurricane Mitch, the U.S. has also created a "Crisis Corps", composed primarily of those who formerly served in the Peace Corps and who are pitching in to provide short-term assistance.

The government of President Flores is committed to the full implementation of a civilian police force and the Congress has taken essential constitutional steps to effect that. The U.S. Government strongly supports this action. The American Embassy in Tegucigalpa provides specialized training to police officers through the International Criminal Training Assistance Program (ICITAP).

Security Assistance

The role of the Honduran armed forces has changed significantly in recent years as many institutions formerly controlled by the military are now under civilian authority. The defense and police budgets have hovered at around $35 million during the past few years. The abolition of conscription resulted in a decrease in the size of the armed forces. The volunteer system has helped to increase troop strength somewhat, but many military units are still significantly below authorized strength levels. Formal U.S. security assistance has declined from over $500 million provided between 1982 and 1993 to $500,000 annually in International Military Education and Training (IMET) courses. Some residual credits are still available from previous military aid, but will be exhausted within the next few years.

In the absence of a large security assistance program, defense cooperation has taken the form of increased participation by the Honduran armed forces in military-to-military contact programs and bilateral and multilateral combined exercises oriented toward peacekeeping, disaster relief, humanitarian/civic assistance, and counternarcotics. The U.S. Joint Task Force stationed at the Honduran Soto Cano Air Base plays a vital role in supporting combined exercises in Honduras and in neighboring Central American countries. While JTF-Bravo has been involved in several multilateral exercises and numerous smaller humanitarian deployments, it played an absolutely critical role in helping the U.S. to respond to Hurricane Mitch by saving lives, repairing roads and critical infrastructure, and meeting high priority health and sanitation needs. U.S. forces also delivered millions of dollars worth of privately donated goods to those in need.

U.S. Business Opportunities

The United States historically has been, and remains today, Honduras' largest trading partner. U.S. Department of Commerce trade data show that bilateral trade between the two nations reached $5.2 billion in 1998. American businesses exported $2.4 billion in goods and services to Honduras in 1998.

U.S. investors account for nearly three-quarters of the estimated $900 million in foreign direct investment in Honduras, and more than 100 American companies operate there. The largest U.S. investment in Honduras is in the agribusiness sector. Other important sectors include petroleum products marketing, maquiladoras (in bond assembly plants), electric power generation, banking, insurance, and tobacco. U.S. franchises have taken off in recent years, mostly in the fast food sector.

Opportunities for U.S. business include agricultural machinery and equipment, automotive parts and service equipment, tourism, medical equipment, electrical power systems, and construction equipment and products. Best prospects for agricultural products are corn, milled rice, wheat, soybean meal, and consumer-ready products.

U.S. citizens contemplating investment in real estate in Honduras should proceed with caution, especially in coastal areas or on the Bay Islands, because of frequently conflicting legislation and problems with land titles. Such investors, or their attorneys, should check property titles not only with the property registry office having jurisdiction in the area in which the property is located (being especially observant of marginal annotations on the deed and that the property is located within the area covered by the original title), but also with the National Agrarian Institute (INA) and the National Forestry Administration (COHDEFOR).

Other Contact Information

American Chamber of Commerce
Hotel Honduras Maya
Apartado Postal 1838
Tegucigalpa, Honduras
Tel: (504) 232-7043/232-6035
Fax: (504) 232-9959
(Branch office in San Pedro Sula)

Caribbean/Latin American Action
1818 N Street, N.W.
Suite 310
Washington, D.C. 20036
Tel: 202-466-7464
Fax: 202-822-0075
Internet: http://www.claa.org

U.S. Department of Commerce
International Trade Administration
Office of Latin America and the Caribbean
14th and Constitution Avenue, N.W.
Washington, D.C. 20230
Tel: 202-482-0057
800-USA-TRADE
Fax: 202-482-0464
Internet: http://www.ita.doc.gov

U.S. Agency for International Development
1300 Pennsylvania Avenue, N.W.
Washington, D.C. 20523-0001
Tel: 202-712-4810
Fax: 202-216-3524
Hurricane Relief Website: http://hurricane.info.usaid.gov

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program provides Consular Information Sheets, Travel Warnings, and Public Announcements. Consular Information Sheets exist for all countries and include information on entry requirements, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the country. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Public Announcements are issued as a means to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas which pose significant risks to the security of American travelers. Free copies of this information are available by calling the Bureau of Consular Affairs at 202-647-5225 or via the fax-on-demand system: 202-647-3000. Consular Information Sheets and Travel Warnings also are available on the Consular Affairs Internet home page: http://travel.state.gov. Consular Affairs Tips for Travelers publication series, which contain information on obtaining passports and planning a safe trip abroad are on the internet and hard copies can be purchased from the Superintendent of Documents, U.S. Government Printing Office, telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225. For after-hours emergencies, Sundays and holidays, call 202-647-4000.

Passport information can be obtained by calling the National Passport Information Center's automated system ($.35 per minute) or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648). It also is available on the internet.

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).

U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register at the U.S. embassy upon arrival in a country (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you in case of an emergency.

Further Electronic Information

Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; daily press briefings; Country Commercial Guides; directories of key officers of foreign service posts; etc. DOSFAN's World Wide Web site is at http://1997-2001.state.gov.

U.S. Foreign Affairs on CD-ROM (USFAC). Published on an annual basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Contact the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. To order, call (202) 512-1800 or fax (202) 512-2250.

National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information. It is available on the Internet (www.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202) 482-1986 for more information.

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